RESP Insurance means Registered learning Savings Plan Insurance. It is one of the best ways to save for your child/children’s or grandchild/grandchildren’s post-secondary education. Just about anyone, that is parents, grandparents, friends or benefactor, can contribute money at any time into an RESP. For each child, there is a lifetime total of $50,000. Contributions to a RESP are not tax deductible. If any investment income that is earned within the plan is withdrawn it becomes taxable.
A government benefit is that the federal government will automatically contribute a Canada Education Savings Grant (CESG) of 20% of what you put in, up to $500 per year, to a lifetime maximum of $7,200 for each child. If your family income is low, you will receive a higher amount.
If you intend for your child to attend college/university and want persons as well as the government to contribute, then consider setting up an RESP. Let my agency examine your current and future family situation and do the work for you.
Depending on your needs, you may access a family RESP or an individual RESP. The difference is that with the family RESP, the beneficiaries must be related to you whereas, with the individual RESP, they don’t have to be.